Nucleo S.A.

inactive

IIC will support Nucleo S.A.’s (the “Company”) three-year investment plan (2017-2019), which consists of: (a) license acquisition of the 700Mhz 4G LTE spectrum public auction sponsored by Comisión Nacional de Telecomunicaciones de Paraguay (“CONATEL” or the “Regulator”); (b) expansion and deployment of 3G/4G network and related infrastructure, and; c) maintenance of the existing network (the “Project”).The total Project cost is estimated at US$180 million equiv. in Guaranies. The Company will finance this investment plan with a combination of cash from operations and the IIC A-Loan of up to US$60 million equiv. in local currency that potentially could be complemented with additional US$10 million equiv. in Guaranies loan from local commercial banks (“Parallel Financing”). The proposed financing will be structured as a senior unsecured loan and have the tenor of up to 6 years with 2 year grace period.In March 2017, the IIC successfully registered in the Comisión Nacional de Valores (“CNV”) a global local bond program of up to US$180 million equiv. in Guaranies to support IDB Group’s development mandate in Paraguay. Nucleo’s financing from IIC will be the first under such global local bond program, whereas a public offering of up to US$60 million to fund this deal is expected in December 2017. This public bond offering by IIC will be the first of its kind in the Paraguayan local capital market.The Project will contribute to: (i) improving mobile broadband connectivity and capacity for both retail and business subscribers; and (ii) expanding mobile broadband coverage and capacity both in the urban and rural / remote areas. It is well known that access to broadband connectivity promotes the so-called Digital Economy while increasing productivity and ultimately enhancing the country’s competitiveness. The proposed Project not only is in line with the Paraguayan National Telecommunication Plan 2016-2020[1] which intends to expand the mobile telecommunication coverage in Paraguay and improve affordable broadband internet coverage in urban and rural areas but also is aligned with IIC’s Business Priority Areas in terms of promoting infrastructure for development and innovation-technological development.[1] Plan Nacional de Telecomunicaciones Paraguay 2016-2020” Comisión Nacional de Telecomunicaciones - CONATELhttps://www.conatel.gov.py/images/iprincipal/PNT%202016_2020/RD.244.201… />